The Florida Legislature has passed a new statute that, if signed by the Governor, will significantly change how non-compete agreements work in the state. The “Florida Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act” will go into effect on July 1, 2025. So, if you're a business owner or executive in Florida, now is the time to prepare.
Why This New Law Matters
The CHOICE Act is designed to strengthen the enforceability of non-compete agreements and garden leave agreements for certain high-earning employees and independent contractors. Garden leave agreements, more popular in Europe than the United States, give former employees some or all of their former salary for a defined period during which they cannot work for competitors in the industry.
Under the new law, if a company uses a properly drafted non-compete or garden leave agreement, Florida courts must issue a preliminary injunction to stop a former employee from working for a competitor unless the employee can convince the court otherwise. This is a major change from current Florida law, which placed the burden on employers to prove a breach.
The law also allows for longer restriction periods—up to four years in some cases—which is a major departure from existing norms where courts often find agreements over two years unreasonable.
Who the New Law Applies To
The new law only covers employees or independent contractors who make twice the average wage for the county where the business is based (or where the worker lives if the business is out of state). In most Florida counties, this means the law will apply to employees earning approximately $100,000 or more per year. Healthcare practitioners are specifically excluded from the law.
What This Means for Employers
If a business relies on non-competes to protect confidential information, client relationships, or competitive advantages, the CHOICE Act gives that business a clearer and stronger path to enforce those agreements—but only if they’re drafted to meet the Act’s specific requirements. To take full advantage, you’ll need to update or rewrite your agreements to match the new legal standards.
What about the Federal Ban on Non-Competes?
Last year, the Federal Trade Commission released a final rule banning non-compete agreements nationwide. The FTC’s authority was immediately challenged in the court system and a federal judge in Texas ruled it was “unlawful” and set it aside on a nationwide basis. Accordingly, Florida’s law on non-compete agreements remains in full force and effect.
Even before the CHOICE Act, Florida law is generally more favorable to employers than other states, and the existing statute will still apply to agreements that do not meet the definitions of a “covered noncompete agreement” and a “covered garden leave agreement.”
What You Should Do Now
While the statute still needs Governor DeSantis’ signature to become law, the bill passed with overwhelming support by Florida Republicans and appears consistent with the Governor’s “pro-business” policies. Therefore, employers should prepare for the CHOICE Act before the July 1, 2025 effective date.
The first step is to work with legal counsel to revise or draft agreements to meet the CHOICE Act’s specific requirements.
Our team can help you evaluate your current contracts, identify risks, and draft compliant non-competes to ensure your business is protected under this new law.
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This publication is for general information only. It is not legal advice, and legal counsel should be contacted before any action is taken that might be influenced by this publication.
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